The Biden Admin. wants a $500K limit for like-kind exchanges, which allow investors to defer taxes. If enacted, the change could have a big impact on commercial RE sales. WASHINGTON – One proposal in President Joe Biden’s $1.8 trillion American Families Plan has been drawing close attention from concerned commercial real estate investors. It would place a $500,000 limit on 1031 exchanges, which allow investors to defer paying tax on real estate gains if they reinvest the proceeds to buy other property within six months of the sale. The bill would limit gains to $500,000 for each taxpayer ($1 million
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By Kerry Smith How can the state mitigate condo disasters following the tragedy in Surfside? A Fla. Bar task force pulled together experts and submitted its recommendations on Tues. In Sept., Realtors outlined the problems condo buyers face getting important docs, suggesting better records and tighter oversight. TALLAHASSEE, Fla. – In the aftermath of the collapse of Champlain Towers South in Surfside, Florida, state lawmakers and other stakeholders looked closely at existing laws and asked what could be done to avert a similar tragedy going forward. The building collapse killed 98 residents on June 24, 2021. In response, the Florida
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Fewer buyers qualify for conventional mortgages due to higher prices and lower downpayments. As a result, the number of jumbo loans is at pre-Great-Recession levels. NEW YORK – Bank of America (BofA) researchers reported that originations of “jumbo” U.S. residential mortgage loans surpassing “conforming limits” set for Freddie Mac and Fannie Mae could total $550 billion this year, a level not seen since the run-up to the 2008 financial crisis. Jumbo originations reached about $283 billion in the first half of 2021, putting the annual volume close to a post-crisis record. However, several public mortgage lenders recently said they would
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In Aug., 13% of appraisals came in below a home’s contract price. It was higher in May (19.7%), but is still up compared to sales early last year (7.3% in Jan. 2020). NEW YORK – An abnormally high number of homes across the United States are being appraised below their agreed-upon sales prices, causing some deals to implode. With home prices soaring in recent months, buyers often pay above asking price to win bidding wars. As a result, CoreLogic estimated that about 13% of appraisals came in below the contract price in August. That’s better than in May (19.7%), but
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By Amber Randall After the 12-story Surfside condo complex collapsed, experts wondered if condo demand would decline – but 3Q Miami-Dade condo sales were the highest in years, with luxury units selling at a record pace. Any stigma seems isolated to older inventory and buildings close to the Surfside tragedy. MIAMI – The deadly collapse of a 12-story condo tower in Surfside left urgent questions about the safety of similar buildings – and also the future of South Florida’s condo market, especially in older buildings. New data shows the market only heated up, with record sales and price growth across
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By Kerry Smith Business is good, according to NFIB’s monthly study – but it would be better for small companies if they could get more workers and not worry about inflation. WASHINGTON – A monthly study of small business attitudes, the NFIB Small Business Optimism Index, decreased one point in September to 99.1. Three of the index components improved, five declined and two were unchanged. Overall, America’s small businesses are doing well, but many have trouble attracting new employees and some face supply-chain shortages. “Small business owners are doing their best to meet the needs of customers, but are unable
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By Romina Ruiz-Goiriena HUD says it will consider climate risk when underwriting loans (VA, Agriculture, etc.), promoting new energy-efficient housing and updating guidelines for grants. WASHINGTON – The U.S. Department of Housing and Urban Development (HUD) announced a plan Thursday to tackle the effects of global warming. Provisions include factoring in climate risk when underwriting loans, incentivizing the construction of energy-efficient housing and updating grant guidelines that provide states funding to rebuild infrastructure after a major natural disaster. The move is part of a wider strategy led by the White House and 20 other federal agencies more than a month
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By Erica Plemmons Florida Realtors economist: NAR’s latest Florida Realtors Member Profile looks beyond 2020 home sales and prices, providing a closer look at the Realtors who made it happen. It provides details such as the state’s Realtor demographics, businesses and community commitment. ORLANDO, Fla – The 2020 real estate story – the pause and fall of sales due to COVID-19 followed by a surprising bounce-back to some of the strongest sales on record – has been told time and time again. But what is known about those behind the scenes – the agents, brokers and appraisers – supporting the
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By Bailey Schulz It’s likely more Canadians will snowbird in Fla. this year, but they must be fully vaccinated to return home – or even to vacation in a different Canadian province. OTTOWA, Canada – Starting Oct. 30, the Canadian government will require all air travelers and passengers on interprovincial trains to be vaccinated against COVID-19. The new policy, first announced in August, will affect all commercial air travelers, passengers on trains between provinces and cruise ship passengers. The government is also requiring employers in the federally regulated air, rail, and marine transportation sectors to establish vaccine mandates by Oct.
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By Kelsey Ramirez CoreLogic: Homeowners with mortgages – about 63% of all U.S. properties– saw a 29.3% annual increase in equity, averaging out to a gain of about $51.5K per borrower. NEW YORK – Homeowners gained a total of $2.9 trillion in equity in the second quarter of 2021 as home prices continued to grow, according to a new report. Negative equity share, where a homeowner owes more on their home than what it is worth, fell to 2.3% in the second quarter, and 163,000 homeowners regained equity, CoreLogic’s Homeowner Equity Report showed. Homeowners with mortgages, which is about 63% of all properties in the U.S.,
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